Tom Peters2000: Distinct or … Extinct The Third annual Conference on Customer Service Management Orlando/13November2000

NOW THAT’S B-I-G! “The period will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.” David Schneider & Grady Means, MetaCapitalism

Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock

The [New] G e Way DYB.com

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Brand Inside Brand Org: Lean, Linked, Electronic & Malleable

White Collar Revolution!

“Assetless Company” John Bryan, CEO, on selling all Sara Lee’s manufacturing

RR on “Assetless” [J.B.] Sara Lee “The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

Advance Paradigm Data on 165,000,000 prescriptions per year; docs and insurers have access to records Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save $14,000 per year in review time Rev in ’99: $2B; $477M in ’98 Source: Business Week (09.00)

Brand Inside Brand Work: The WOW Project

“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

Brand Inside Brand You: Distinct … or Extinct

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed, and that increasingly means you won’t get paid much either.” Michael Goldhaber, Wired

Brand Inside Brand Talent: The Great War for Talent

“When land was the scarce resource, nations battled over it. The same is happening now for talented people.” Stan Davis & Christopher Meyer, futureWEALTH

“We have transitioned from an asset-based strategy to a talent-based strategy.” Jeff Skilling, COO, Enron

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia Pacific changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” Ed Michaels, War for Talent ( )

“Diversity defines the health and wealth of nations in a new century. Mighty is the mongrel. … The hybrid is hip. The impure, the mélange, the adulterated, the blemished, the rough, the black-and-blue, the mix-and-match – these people are inheriting the earth. Mixing is the new norm. Mixing trumps isolation. It spawns creativity, nourishes the human spirit, spurs economic growth and empowers nations.” G. Pascal Zachary, The Global Me: New Cosmopolitans and the Competitive Edge

“Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can – and must – leverage the younger generation very early in their careers.” Ed Michaels, War for Talent ( )

Women and new- economy management …

The New Economy … Shout goodbye to “command and control”! Shout goodbye to hierarchy! Shout goodbye to “knowing one’s place”!

Women’s Stuff = New Economy Match Improv skills Relationship-centric Less “rank consciousness” Self determined Trust sensitive Intuitive Natural “empowerment freaks” [less threatened by strong people] Intrinsic [motivation] > Extrinsic

“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

“Boys are trained in a way that will make them irrelevant.” Phil Slater

Mantra2000 Talent = Brand

New Economy: Was-Is Pine-paneled Office Address: 1 Big Man Plaza Secretary Suit Formal Rank conscious Pretense (“Failures are for fools.”) I love “Yes men” Self-contained Seat 9B, UA233 Address: Typing: 60 WPM Casual M-F Approachable We are a HOT Team Screwing up is as normal as breathing I love Misfits! I love partners

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Work II The Commodity Trap

“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

“We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina

Brand Outside Strategy 1 : Hitch Your Wagon to Pioneers !

“Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive.” John Roth, CEO, Nortel

Brand Outside Strategy 2 : Use E-Commerce to Re-invent Everything!

OVERVIEW

Tomorrow Today: Cisco! 90% of $20B (=$50M/day) 75% mfg. outsourced; 50% of orders routed to supplier who ships direct Gross margin: 65%; Net margin: 28% Savings in service and support from customer self-management: $500M

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the Web per se. Schwab: $25B per week in asset transactions [80% of trades] [Transition to e.Schwab: Rev. fell, then quickly doubled]

COMMUNITY SERVICES!/ CUSTOMER CONTROL!

Tomorrow Today: Cisco! 90% of $20B; save $550M C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”

“The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

SUMMARY: REINVENT EVERYTHING

“One cannot be tentative about this. Excuses like ‘channel conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you never heard of 24 months ago.” Jack Welch [07.00/Forbes.com]Forbes.com

WebWorld = Everything Web as a way to run your business’ innards Web as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry Web/B2B as ultimate wake-up call to “commodity producers” Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data Web as an Encompassing Way of Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entrée, at any size, to World’s Best at Everything as next door neighbor

Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked- communication, six-layer organization.

“Banking is necessary. Banks are not.” Dick Kovacevich, Wells Fargo

Brand Outside Strategy 3 : Fighting Back via Systems Integration!

B2B 1999 – 2004: 50X 2004: $7.4 T Source: GartnerGroup (per Reuters )

GM/Ford/DaimlerChrysler (02-27) Covisint $240B (+$500B) I.P.O.

Solectron, IBM, Nortel, Matsushita, Seagate, Etc. E2Open.com $700 B

Goal? Drive profits to zero!* *Remember AMR and “dynamic pricing.”

“Net Nips Real Estate Sales Fees” Headline, p.1B, USAToday * *Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

Message: “BOX” SELLERS LOSE!

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting bus! (31,000 bods)

“These days, building the best server isn’t enough. That’s the price of entry.” Ann Livermore, Hewlett Packard

“We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems

Brand Outside Strategy 4 : It’s the Experience!

“ Experiences are as distinct from services as services are from goods.” Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on … “We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” Nancy Orsolini, District Manager

Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-based Leadership

The “Experience Ladder” Experiences Services Goods Raw Materials

1940: Cake from flour, sugar (raw materials economy): $ : Cake from Cake mix (goods economy): $ : Bakery-made cake (service economy): $ : Chuck E. Cheese (experience economy) $100.00

Brand Outside Strategy 5 : Women Rule!

????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 80% Consumer Electronics … 51% Cars … 50%+/80% Etc.

48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

Women … 50+% (!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week; Jupiter Communications

THIS JUST MIGHT BE THE BIGGEST “THING” IN THIS SEMINAR. [PLEASE: THINK ABOUT IT!]

Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold

“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.” “He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.” Faith Popcorn

EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ” EVEolution

Weight Watchers International “Model” “What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?” “What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with today’s skills?” EVEolution

“Women don’t buy brands. They join them.” Faith Popcorn, EVEolution Faith Popcorn

STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction that women’s increasing power – leadership skills and purchasing power – is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Altan … THIS IS EVEN BIGGER THAN THE INTERNET! Tom Peters

“Honey, are you sure you have the kind of money it takes to be looking at a car like this?”

27 March 2000: to TP from Shelley Rae Norbeck “I make 1/3 rd more money than my husband does. I have as much financial ‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

Speaking of Enormous [Missed] [Huge] Opportunities...

Subject: Marketers & Conventional Wisdom It’s 18-44, stupid!

Subject: Marketers & Stupidity Or is it: is stupid, stupid!

Stats 18-44: -1% 55+: +21% (55-64: +47%)

Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”

Brand Outside Strategy 6 : Embracing an Age of Self-Determination

The Individual

“You are the storyteller of your own life, and you can create your own legend or not.” Isabel Allende

The Organization: Seller’s [Talent] Market

“Talented people are less likely to wait their turn. We used to view young people as trainees; now they are authorities.” Ed Michaels, War for Talent ( )

Web World: POWER TO THE PEOPLE

The control revolution. The potentially monumental shift in control from institutions to individuals made possible by new technology such as the Internet. The conflict over such change between individuals and powerful entities (governments, corporations, the media). Source: Introduction, The Control Revolution, Andrew Shapiro

Women Get Respect … and Take Charge

“Greater opportunity for women is probably the most significant gain for human freedom in the last century.” Andrew Sullivan, The New Republic

The Elderly Get Respect … and Take Charge

Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”

Our Biggest Industry: The Patient Takes Charge

“Savior for the Sick” vs. “Partner for Good Health” Source: NPR/VPR

1965: “ ‘Doctor’ will see you now. ‘Doctor’ will take care of you.” YES, NURSE. ME GOOD PUPPY DOG. 1995: “HMO will take care of you.” BULLSHIT. 2005: “I will take care of me. I’d like your expert help.”

Sooooo … Is your strategy centered around customer-client empowerment & self- determination? Hint: This means letting go of traditional sources of power!

Brand Outside Strategy 7 : BRAND POWER!

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories.” Rolf Jensen, Copenhagen Institute for Future Studies

Brand = You Must Care! “Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.” Tom Chappell, Tom’s of Maine

“WHO ARE YOU [these days] ?” TP to Client

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Brand Leadership Weird Rules! Passion Rules!

Renewal = The “High S.D.” Org/Individual Pioneer Acquisitions Pioneer Customers Pioneer Assignments/Pioneer Projects [F2F/K2K] Hire Weird [Diversity]/Train Weird/ Promote Weird/Acquire & Cherish & Pay & Promote [“Six Sigma”] Talent [Fast] Weed Un-weird [“One Sigma” “Talent”] Hang with Weird [Univ. of Weird]/Lunch with Weird/ Read & Surf Weird/Vacate Weird R.A.F. to R.F.A. to F.F.F. Sense of Humor [Cherish Thine Failures]

“Create a Cause, not a ‘business.’ ” Gary Hamel, Fortune (06.00), on re- inventing a company (Exemplar #1: Charles Schwab)

Brand Leadership! “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership

Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander